China is now #2 in the global art market - and this could be great news for all areas of collectibles...

Ask any wine expert and they'll tell you that China is the most important buyer offine wines.

And it isn't just wine. The People's Republic is also dominating the markets for fine watches, fine art and other collectibles...

China's art markets, in particular, have been in the news this week. This follows a report commissioned by The European Fine Art Foundation (TEFAF).

Thereportstates that the China was accountable for 23% of the global art market in 2010 - meaning that Britain is no longer the second-biggest player in the art world...

Overall, Britain has slipped to third place with 22% of the market share (5% down since 2006). Meanwhile, the USA maintained its 34% share.

At first glance, this doesn't look good for Britain. Yet itstill stands to benefit from China's growing success...

Why? Just look at the fine wine markets...

Experts predict great things for the fine wine markets in 2011.

This is because China's voracious appetite for fine wines is reinforced by its strengthening economy (up 10.3% over the past year) and also its strengthening currency...

For example, Exchange Magazine, predicts that China could cause "a rise in fine wine prices of 21% ... a relatively conservative forecast of an appreciation of around the same amount as 2010."

And here's the thing: market analysts also predict that Asia's collectors will be attracted to buying rare wines in the UK.This is becausethey'll be willing to pay more in GDP, with no additional cost to themselves.

These predictions not only apply to fine wines. They can just as easily apply to fine artworks ... or watches ... or classic cars ... or any other collectible you can think of.

My point is this: even though Britain is no longer the second-biggest player in the art world, it still stands to benefit from China's continuing success.

Collectibles - be they wine or art - are tangible, portable and boast wide global appeal (particularly among high net worth individuals). Because of this,collectibles willlikely be at the forefront as China and Britain benefit from each other in future years.

Rest assured, there are exciting times ahead in the global collectors' markets.